Maldives secures Malaysian support for $100 million currency swap facility

Malaysia has agreed in principle to provide the Maldives with a USD 100 million currency swap facility through its central bank, Malaysian Prime Minister Anwar Ibrahim said on Monday.

Anwar made the announcement following official talks with President Mohamed Muizzu at the President’s Office during his visit to the Maldives at Muizzu’s invitation.

In a press statement after the talks, Anwar said Muizzu had raised a proposal by the Maldives Monetary Authority (MMA) for a USD 100 million currency swap facility through Bank Negara Malaysia.

“The principles of the USD 100 million facility proposed by the MMA have been agreed,” Anwar said, adding that the central banks of the two countries would work together to expedite the arrangement.

He said the agreement reflected the trust and close relations between the Maldives and Malaysia.

Speaking at an official banquet held in his honour later in the day, Anwar said he had discussed the facility with the central bank governor and requested that the process be completed faster than under normal procedures.

“We agreed to this without any delay out of respect for this close relationship,” Anwar said. “A short while ago, I discussed with the governor expediting this facility. We discussed completing it faster than the usual process. The reason for this is the close relationship between our two countries.”

Muizzu, speaking at the banquet, thanked the Malaysian government for agreeing to provide the currency swap facility.

Anwar also addressed issues faced by Maldivian students in Malaysia, where more than 2,000 Maldivians are studying.

He said proposals submitted by the Maldives to address difficulties faced by students would be discussed by the Malaysian Cabinet, with a view to finding solutions.

Anwar said Malaysia would also work to ease visa arrangements for parents and guardians of students, including arrangements that would make it easier for them to stay with their children.

The Malaysian Prime Minister also proposed establishing a joint commission to coordinate and expand cooperation between the two countries, with its first meeting to be held in Malaysia before the end of this year.

He said Malaysia would hold discussions with state energy company Petronas following a request from the Maldives for assistance with studies related to oil and mineral exploration.

The Maldives also requested reciprocal arrangements concerning the two countries’ embassies, Anwar said, adding that the matter would be discussed through the proposed joint commission.

The two countries also agreed to cooperate on climate change-related issues.

Anwar said Malaysia and the Maldives shared similar positions on Palestine and would continue to work together in advocating for the rights of Palestinians.